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(Felsted to Checkpoint B. I) (CAPM and expected returns) a. Given the following holding period returns, compute the average returns and the standard deviations for
(Felsted to Checkpoint B. I) (CAPM and expected returns) a. Given the following holding period returns, compute the average returns and the standard deviations for the Sugita Corporation and for the market them comparable with the risk free rate. For simplicity, you can convert from monthly to yearly retums by multiplying the average monthily relums by 12) c. How does Sugta's historical average retum compare with the retum you should expect based on the Capilai Asset Pricing Model and the firm's syslematic risk? a. Given the holding period returns shown in the table, the average monthly retum for the Sugita Corporation is \%. (Round to three decimal places ) The stand ard denstion for the Sugita Corporation is (Round to two decimal places) Given the holding penod returns shown in the table, the average monthly relum for the market is 6. (Round to three decimal places.) The standard devation for the maket is (Round to two decimal places ) b. II Sug ta't beta is 124 and the risk free tate is 9 percent, the expected retum for an investor owning Sugita is 6. (Round to two decimal places) The average annual histoncal retum for Sugita is (Round to two decimal places) c. How does Sugta's historical average return compare with the return you should expect based on the capital asset pricing model and the firm's systematic risk? (Select from the drop-down menu) Sugla's historical average retum is the retum based on the capital asset pricing model and the firm's systematic risk. Data table
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